Whistle While You Work

May 26, 2009

Inside and outside Telecommunications, opportunity abounds!

Much to my surprise and delight, amidst the “stimulus recovery”, money floating around vis-à-vis the American Recovery and Reinvestment Act of 2009 (ARRA), our government has taken action to combat potential fraud!

Without sounding like a Sham-wow commercial, but if you are around or near any of this money, you could be a big winner.   All you have to do is pucker up your lips and … whistle. (You thought I was going to say kiss some ass didn’t you?)

The Feds have issued, as a rule, broader (better) definitions of what constitutes fraud by those using stimulus funds.  More importantly, especially if you are in the employ of a firm using said stimulus funds, even greater personal protections are afforded to the employee if you decide to blow that whistle.

Now, I’m not saying there are dishonest operators in America.  I pretty much maintain that the ethics and integrity of most businesses and institutions are as good,  if not better, than those found inside the Beltway.  With over $700 billion in stimulus floating around, I am sure a few shekels may be “innocently” misplaced or used inappropriately. Mistakes happen, if you will…sort of like Presidential appointees or Congressional officials mistakenly not paying income taxes.

These new rules come from the Federal Acquisition Regulation (“FAR”) Counsel as the Enhanced Whistleblower Protections (FAR Case 2009-012).  Just a few highlights:

The rules apply to all “Non-Federal employers” who receive grants or contracts, stimulus funds (“employers”), including state and local governments and public or private contractors and their subcontractors.

Employers cannot fire, demote or otherwise discriminate against an employee “as a reprisal for disclosing covered information.”

“Covered information” is any one of five offenses:

  • Gross Mismanagement
  • Gross Waste of Covered funds
  • A substantial and specific danger to public health or safety
  • An abuse of authority
  • Violation of law, rule or regulation
  • The Whistle Blower only needs to have “reasonable belief” that some hanky-panky is going on with the funds or use of funds

The covered rights cannot be waived by condition of employment, including pre-dispute arbitration agreements; unless it’s already included in a collective bargaining agreement.

The Kicker: Employers must post notices of these procedures, rights and remedies.  So keep an eye on those bulletin boards!

Now, I put on my reality hat.  I can only imagine the hell anyone will go through if he or she whistles and not necessarily the hell just from the employer.  I am sure our Department of Justice will be most aggressive in pursuing such fraud on a “fast track” such as they do on qui tam complaints. (Cynicism)

So what am I saying?  It’s good the Government wants to abate fraud, but expect years of your time to go by before anything, if anything, substantive happens.  Whistle Blowers do receive some type of reward as a percent of the alleged fraud, so if I were a Whistle Blower, I wouldn’t spend the money until you have it!

Written by Dave Rusin - Telecom Executive
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